Queensland Health payroll saga raises taxing issues

THOUSANDS of Queensland Health staff could be short-changed again next financial year as fears grow the payroll crisis won't be fixed by July 1.
Tax experts say arrears paid after June 30 could push staff into new tax brackets, and force thousands to pay the Medicare levy for the first time.
Some union officials say they have lost hope that the millions of dollars owed to tens of thousands of Queensland Health workers will be paid by the end of this financial year.
Superannuation and overpayments are also tied up in the debacle.
Premier Anna Bligh and Health Minister Paul Lucas have repeatedly assured workers they wanted and expected the problem to be fixed by the financial deadline.
The pay crisis will move into its fifth cycle next Wednesday, with more problems expected.
Australian Services Union secretary Julie Bignell said payroll staff still had to check 40,000 anomalies, sifting through them for errors.
"Given that, I can't see how everything could be possibly fixed by July 1," Ms Bignell said.
She said corrections by July 1 were particularly concerning for workers who had been overpaid, because they were worried about being taxed too much this year.
Electrical Trades Union organizer Scott Reichman said he wouldn't pass on any promises to his workers about pay relief in the new financial year.
Tax specialist Mohan Satyanarayanan said back pay paid to workers in the 2010-11 financial year could push some workers into a new tax bracket.
He said it could also mean workers being slugged hundreds of dollars for a Medicare levy if the arrears pushed their income over the threshold of $73,000.
But tax expert Danielle Watson of Accounting Affairs at Clay field said arrears earned in a previous financial year could be taxed confessionally, with the onus on the employer.
Queensland Nurses Union secretary Gay Hawksworth said nurses were desperate for their group certificates to be correct.
"That includes superannuation," she said. "They don't want to be messed around. If things won't be fixed by July 1, I hope we are told soon so nurses know what to expect."
Ms Bligh said staff were working "double time" to ensure entitlements were paid by the new financial year.